Message to all the journos and 'researchers'
- Thread starter tubs
- Start date
Well the Chapel Street set are probably popping e's or doing some lines
. Not sure how acceptable that is whilst dining alfresco.
Well the Chapel Street set are probably popping e's or doing some lines
Dunno if they'd be eating anything whilst on pills and coke.
Mark
Are we still talking about Mars bars???
Well the Chapel Street set are probably popping e's or doing some lines
Seems we've moved on to something a little more hard core.
There seems to be plenty of houses out there for sale, some cheaper, some more expensive.
The trouble happens when younger folk have a corolla income and have ferrari tastes.
I was just happy to be able to buy my first home whereby the roof didn't leak.
Nowadays people want autogarage doors, dishwashers, brick construction, fully carpeted in all the 3 to 4 bedrooms.
I like to learn to look after and appreciate a house from a very basic start but others want it with all the trimmings right away.
EG: Couple had raised their family in rental accom and family had grown up and left home. Couple both working and no accounts except rent, and food to pay. They owned their own car.
We suggested they buy a modest house in town and renovate to their own taste.
"Oh no, we want more than that". (houses were cheap at the time)
Post Boom: They buy a huge 5 acre block of land, build a brand new big house with the new building costs, in the face of rising interest rates.
Good for a while, till the interest rates start biting, and the rain made every blade of grass grow like fury. Most every weekend now spent at home (can't afford to go anywhere) sitting on the rideon lawnmover.
What they could have done: Bought 2 cheap houses. Renovated. Sold in the boom. Used the cash to buy a block and build a modest home with very little debt and very little mowing.
The trouble happens when younger folk have a corolla income and have ferrari tastes.
I was just happy to be able to buy my first home whereby the roof didn't leak.
Nowadays people want autogarage doors, dishwashers, brick construction, fully carpeted in all the 3 to 4 bedrooms.
I like to learn to look after and appreciate a house from a very basic start but others want it with all the trimmings right away.
EG: Couple had raised their family in rental accom and family had grown up and left home. Couple both working and no accounts except rent, and food to pay. They owned their own car.
We suggested they buy a modest house in town and renovate to their own taste.
"Oh no, we want more than that". (houses were cheap at the time)
Post Boom: They buy a huge 5 acre block of land, build a brand new big house with the new building costs, in the face of rising interest rates.
Good for a while, till the interest rates start biting, and the rain made every blade of grass grow like fury. Most every weekend now spent at home (can't afford to go anywhere) sitting on the rideon lawnmover.
What they could have done: Bought 2 cheap houses. Renovated. Sold in the boom. Used the cash to buy a block and build a modest home with very little debt and very little mowing.
I've just fallen off my couch laughing so hard. $12/ pack of 25!!
I see outside the restaurants and supermarkets etc all these people (over here) who are "unskilled" and who would be earning no more than $8 per hour, and they are smoking their day's pay away on a quick smoko break.
If you assume that each of those 10,000 people have credit cards, and further assume that to use one of these mars bars they will have to pay 30-40% of their income for the next 30 years, you might just find that as interest rates rise, people settle for half a mars bar, which in the real world would equate to a changes in the rate of household formation. We have not always lived as we currently do. Post war it was not uncommon for several generations to live under one roof in one 3br house. I'm not suggesting anything so drastic, but what if 30,000 20 year olds decide to stay at home for an extra 2-3 years rather than rent to save the extra amount for a deposit, shortage gone.
House of cards! Debt too high, inflation too high, prices do not reflect underlying value, too many newspaper articles (who cares if they're true they create sentiment and are a self fulfilling prophecy). Australia 6 months behind the US. Mining boom please! Speculation yes.
hfw
I agree that young people, especially if hit with higher unemployment, will just delay living on their own. This will hit the 'yuppie' areas hardest. Hence why I don't invest in inner city high rises. However, families with children still have to live somewhere. Where will they go? They can't all go back to live with their parents (though if things get bad enough some will). That's why I believe the outer-suburb market is more solid in terms of rent. Prices, of cause, can still fall.
Alex
Alex
